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Warm Up, Thaw and Chill

For those who live near Chicagoland, you know that we've seen temps in the low 60s on Tuesday that melted all the snow. A day later, temps dropped and a nice, fresh snow fall is covering the evergreens. Warm up, thaw and chill have all taken place in a matter of two days. The same warm up – or chill – can happen in our manufactured housing industry and for MH business owners, executives and professionals like yourself.

We can rapidly warm the winter's chill by taking the right steps to move ahead. We could, with the wrong steps, slide quickly back towards the icy grip of winter. Personally, I'm ready for spring.

For those who went to Louisville and experienced a truly uplifting industry event, you know that manufactured housing pros from coast to coast came together there to do positive business building. Leaders from the Louisville Show attracted one of the Commonwealth of Kentucky's top elected officials and some of his staff; another association leader brought two members of Senator Joe Donnelly's staff. The Show experienced record attendance, post the 2010 cancellation. There has been strong, positive feedback from Show attendees and exhibitors.

The list of positives could go on, but you can read the links above for those details.

Under the Shade of the Money Tree..

Under the shade of the Louisville Show's Money Tree theme for 2013, there were 4 individuals who 'succeeded' in drawing about 60 people to their off-the-Show property lunch that promoted those same four's services and the desire for a new, breakaway 'association.' Let's take a moment and examine the importance of those facts.

Accepting at face value one of those four's assertion that they drew about half of those to the show 'for the first time,' it would mean that 2.2 % (two point two percent) of attendees came due to the four's cross promotional “efforts.” It would also mean that an equal number were drawn off the Show floor. Given weeks of cross promotion by those four, is that a success?

Further, they flaunted the spirit of the Show rules through their action, prompting a back lash by some exhibitors that resulted in the posting of a sign that spelled out the fact that the lunch was not advocated or sanctioned by the Louisville Show.

Among those names mentioned to me by those who attended, perhaps 10 or so were service suppliers, there to network during lunch to build their businesses.

Some of those who went to that lunch were couples, which further reduced the number of MH or MHC companies that lunch attracted.

The point is that the total count was relatively small, all things considered. But the gent who led this is now talking to others about doing something like it at the Manufactured Housing Institute’s (MHI's) annual legislative meeting. Pardon me? A public show of disunity, at the very event that is supposed to promote a strong, united voice to those on Capitol Hill?

Could it be more absurd than that for anyone thinking this is a good idea?

We have a source (one of the organizer's own e-messages) that tells us that they plan to do something similar in Tunica (if so, some whisper, don't look for Tunica's Show organizer's response to be the same as it was at Louisville…).

So this is shaping up as analogous to the political 'divide and conquer.' How can that help our Industry?

In America, we have the right to do some things that frankly ought not to be done. A perfect example is not being an exhibitor – not paying for the Show – and yet trying to leech attendees from the Louisville Show or potentially other future events. Can they do it? Well, they certainly did it.

Should they do it? I wouldn't be bragging about it…

…a common rule of morality is that the end does not justify the means.

Coast to Coast

I've heard from MH Industry leaders, executives and professionals from coast to coast and border to border. These represented a cross section from rank and file to some of the largest companies and all in between. While they may disagree with what ought to be done as a 'response' to this ill-advised “new association,” they all agree it is a bad idea for the MH Industry.

They also think it is a waste of time to try to talk the leader, or his inner 3 person circle, from trying it. Why?

I've heard from about a dozen or so respected pros who have privately spoken or emailed with the ring leader of this ill-advised movement and/or his three buddies. They regretfully expressed that said ring leader won't be talked off his ledge. Each told me that he will do what he plans to do, even if it means he is destroying his legacy in the process.

Recent public commentary by said 'leader' of alleged 'enronesque' practices within MH demonstrate he either has lost touch or is so bent on harming those who once supported his voice that his behavior should give all of his would be followers cause to pause and wonder.

If this is how he 'leads' now, by blasting the hands that once fed his, how will he behave if he is successful at his intended launch of a “new association?”

For those who are sitting on the fence about this proposed new association ought to wonder, if this is how said 'leader' treats past clients and friends, what could he be counted upon if you ever saw things differently than he does?

Is that Leadership?

For the many accomplishments – and there are many – that this individual has done over the years, there is nothing of late of merit to commend this 'leader's' misguided efforts for the past 18 or so months.

This isn't about rivalry, as some in that camp try to portray.

As evidence, at one point, we had three of the four given favorable coverage right here in MHProNews.com. I'd do so again in a heart beat if one or more of the four recanted and made their amends to those whom they have insulted in association and industry leadership roles. I've seen or have heard the messages, “insulting” is a mild term for how some of these messages were written.

Is insulting how such a 'leader' would deal with bureaucrats and politicians?

If so, then as an association, it would be doomed to failure in any advocacy role. Association leaders MUST be able to get along with others – in private and public – even if they disagree. You don't build a bridge by bombing it!

Wall Street and DC

Any one on Wall Street or in DC who are reading this – and we know that you too are among our readers – should be clear that said tiny bunch doesn't speak for or act on behalf of the vast majority of our Industry.

Any investors or regulators who read this should see the four for what they are, not more, not less.

Because the vast majority in our Industry work day by day to do things the right way! Our industry cleaned it's house years before conventional housing faced its 2007-2008 and since debacle.

Doing what's best for your business

At the end of the day, what this group of four's would be followers must ask themselves is this. Would I be better served through existing associations? Or would I be better served by this new group that the four promote that is yet unborn?

I should hasten to add that one of the four claims NOT to support this 'new association' effort. Hmmm. We did an analysis on that topic, linked here, we provide, you decide.

  • MHI, the NCC and existing state/regional associations aren't perfect. But they are actively engaged in working for the good of the Industry in very difficult times!
  • There are decades of history of successes from existing associations.
  • There are recent successes to point to as well. Just because you don't see exactly what you want during challenging times is a little like not supporting your favorite football or sporting team when they have a less than a play-off season. Real fans are loyal! Real association members are too.
  • More associations would only marginalize the efforts of the existing ones.
  • Misguided commentary – “enronesque” being only one of dozens of examples – risks harming our industry with capital sources that only skim and don't dive deep for insights. That misguided commentary is coming at the very time that capital is returning or exploring a return to the MH Industry. Such commentary arguably could harm the very 'smaller' communities and businesses more than the bigger ones!
  • The bottom line is that those who are not actively engaged in existing associations are missing the boat. Those who support any new 'break away' 'new association' effort would arguably be paying to harm their own businesses' interests, and that of the public we serve.

That is why I'm passionate about this subject, because it ought to be about the bottom line for individuals, companies and our industry at large. United we stand! Divided, we are more likely to slide backwards.

I've given numerous opportunities for the 4 to debate their plans in writing in public. They refuse. That too should speak volumes to their would be supporters.

Warm up, Thaw and Chill

Our industry has had its first significant rise in shipments that started in late 2011, and ran through most of 2012. That's a warm up!

That warm up melted snow, but there are those who – regardless of their intentions – could cause the many to suffer a new industry chill. The risk isn't a given, but why risk it at all?

That is what MHProNews hopes to avoid, a new chill. We wish everyone in our Industry well, and want to see new success stories drive our industry to new heights. America needs quality, affordable housing and that is what we provide!

So this commentary here isn't about personalities or rivalries. It is about facts and figures.

The facts are that a new association would take years to become effective, if ever. In the mean time, misguided commentary and division will only harm us.

The best thing that independents can do is align themselves actively and financially with existing associations. Work within those associations for positive forward-looking steps. We put our money where our mouth is on this, and so I can look any of you in the eye and say, please do the same.

Our collective futures will rise or fall by how we respond to any such divisive efforts. We are either part of the problem, or part of the solution. I'm voting for springtime! My money and time are on solutions through existing associations. I hope your money and time are or will be too.

We hope to see you in Tunica. ##

PS: Check our many Exclusive and Red Hot Featured Articles for January and see the

other new stories at MHLivingNews.com too.

l-a--tony-kovachL. A. "Tony" Kovach

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